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Big Oil stays cautious on Venezuela after Maduro removal

Seven months after Nicolás Maduro’s exit, negotiations between an interim government and major U.S. energy firms remain stuck, with no landmark investment deals despite Venezuela’s large crude reserves.

Reported · Written up by our desk · Energy

Venezuela’s long-awaited oil revival has been slower than many in Washington expected, with major U.S. energy companies still holding off on large new commitments roughly seven months after Nicolás Maduro was removed, according to OilPrice citing the Wall Street Journal.

Negotiations between Venezuela’s interim government and large U.S. producers have not produced landmark investment deals despite the country’s vast crude reserves. Oil majors including ExxonMobil and Chevron are taking a cautious approach, with executives wary of Venezuela’s history of nationalizing foreign assets, unresolved compensation disputes dating back to the Chávez era, and lingering political uncertainty.

Francisco Monaldi of Rice University’s Baker Institute said companies have been “burned twice,” making boards reluctant to approve multibillion-dollar projects unless the opportunity is exceptionally attractive. OilPrice also notes that competition among companies pursuing top assets in the Orinoco Belt and Monagas state, alongside pressure for more favorable tax, regulatory, and ownership terms, has further complicated talks.

Chevron has continued expanding production through operational improvements, lifting output to nearly 300,000 barrels per day, but it has stopped short of committing fresh billions to new developments. OilPrice also reports that Exxon has been expanding production, though it has similarly not yet reportedly committed new investment at the scale other projects might require.

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